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Budget 2014 (Merged threads)


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#121 Bostik Bailey

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Posted 22 March 2014 - 07:36 PM

I don't think the money the Government is setting aside for 'advice' will be adequate, with many now not willing to pay fees. Of course, we will see even more shady characters ready to offload people of their cash and extreme caution must be exercised.


Unfortunately this will be true, the carpetbaggers will be rubbing their hands with glee.

Yes these people (of which I will be one) have been prudent through their working lives, but suddenly will have access to 1/2 million quid. I don' t know how to invest this amount of money. The housing market will overheat again this time not on credit but on people with these sums buying houses to let out. It is a ticking bomb whereby younger people will no be able to afford to buy, and probably not be able to save.

Having said that the annuity market gave very poor value simply because you had to buy these, maybe companies may offer a more competitive annuities.

#122 clwydianrange

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Posted 22 March 2014 - 08:46 PM

If it shakes up the annuity market then that can only be a good thing. I will have a 6 figure sum to withdraw if I wish in 2 years time and I want the choice of what to do with it. So I've got a lot of research to do before I decide but whichever way I jump it will be so that my wife will benefit when I go and not some insurance company.

#123 Bedford Roughyed

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Posted 22 March 2014 - 10:08 PM

For some (who do research) it could be good.  Others will fluke it.  Others will research but be unlucky.  And other will blow it. 

 

Human nature and life in action.


With the best, thats a good bit of PR, though I would say the Bedford team, theres, like, you know, 13 blokes who can get together at the weekend to have a game together, which doesnt point to expansion of the game. Point, yeah go on!

#124 JohnM

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Posted 23 March 2014 - 10:20 AM

 If someone is astute enough to have accumulated a £100k or more in a private pension fund, is it not possible that they are also astute enough to know what to do with it?

 

In any case, even on the detail known so far,  precipitate action is hardly likely. I think it goes something like this, though I stand to be corrected

 

1. You can't take any money out until 1st April 2014

2. Between then and 1st April 2015 you can only takle out £30k

3. If you have not previously taken it, the tax-free cash lump sum is limited to 25%

4. From next week retirees will also only have to prove they have £12,000 of income coming in from combined state pension and retirement plans before they can draw on their pension without having to buy an annuity - the previous amount was £20,000 annually. They can then draw on their pension paying tax at a marginal rate.  Take say £50K to buy a motorhome and you could find yourself paying 40% tax when you take your money out

5. The pensioner bond pays 2.88%  for one year rising to 4% for 3 years

 

One thought: the new arrangements are expected to increase tax take in the short term and if people buy pensioner bonds that are in effect lending their own money to the govt, Thus govt borrowing might look as though it has gone done when in fact it has gone up. 



#125 Bostik Bailey

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Posted 23 March 2014 - 01:07 PM

If someone is astute enough to have accumulated a £100k or more in a private pension fund, is it not possible that they are also astute enough to know what to do with it?
 


No necessarily, in about 20 years time I will have access to my pension fund. Which if all goes well will be around £500k. Up until then the most I have saved has been a few grand. I have no idea about where to put that amount of money never mind invest it.

Obviously I will take out financial advice, and hopefully by the time I retire all the scams will have been discovered.

But I'm still wary of financial advisers, since nobody selling anything is completely 'independent'.

#126 Saint Billinge

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Posted 23 March 2014 - 06:16 PM

 If someone is astute enough to have accumulated a £100k or more in a private pension fund, is it not possible that they are also astute enough to know what to do with it?

 

In any case, even on the detail known so far,  precipitate action is hardly likely. I think it goes something like this, though I stand to be corrected

 

1. You can't take any money out until 1st April 2014

2. Between then and 1st April 2015 you can only takle out £30k

3. If you have not previously taken it, the tax-free cash lump sum is limited to 25%

4. From next week retirees will also only have to prove they have £12,000 of income coming in from combined state pension and retirement plans before they can draw on their pension without having to buy an annuity - the previous amount was £20,000 annually. They can then draw on their pension paying tax at a marginal rate.  Take say £50K to buy a motorhome and you could find yourself paying 40% tax when you take your money out

5. The pensioner bond pays 2.88%  for one year rising to 4% for 3 years

 

One thought: the new arrangements are expected to increase tax take in the short term and if people buy pensioner bonds that are in effect lending their own money to the govt, Thus govt borrowing might look as though it has gone done when in fact it has gone up. 

 

How about the Doctor who was conned out of £250,000 after buying shares that didn't exist. From my own experience dealing with the public, there are people who do make very stupid financial decisions, leaving them thousands out of pocket. I once fought for a widow aged 58 to get compensation for advice given by a insurance agent to her late husband who had transferred his company pension to a personal one. Having received over £70,000, my advice was to invest wisely in cash and low-risk investments. She did mention share ISAs to which I advised to do it on the drip monthly as the stock market was high. With so much money going into her account, her bank called her in for a chat. The advice given was to invest all of it in one high risk fund. I was shocked and told her so. Ignoring my warning, she went ahead just before the stock market crashed, leaving her with a loss of £30,000. In the end she cashed in to retire early due to health reasons. 


Edited by Saint Billinge, 25 March 2014 - 06:54 PM.


#127 Bostik Bailey

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Posted 23 March 2014 - 09:07 PM

How about the Doctor who was conned out of £250,000 after buying shares that didn't exist. From my own experience dealing with the public, there are people who do make very stupid financial decisions, leaving them thousands out of pocket. I once fought for a widower aged 58 to get compensation for advice given by a bank to her late husband who had transferred his company pension to a personal one. Having received over £70,000, my advice was to invest wisely in cash and low-risk investments. She did mention share ISAs to which I advised to do it on the drip monthly as the stock market was high. With so much money going into her account, her bank called her in for a chat. The advice given was to invest all of it in one high risk fund. I was shocked and told her so. Ignoring my warning, she went ahead just before the stock market crashed, leaving her with a loss of £30,000. In the end she cashed in to retire early due to health reasons.


Exactly. It's not as if the banks won't put their staff on big incentives to sell these type if products.

A lot of people will have a lot of cash available and a lot of establishments will want that cash for as little as possible.

#128 Saint Billinge

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Posted 24 March 2014 - 07:23 AM

Exactly. It's not as if the banks won't put their staff on big incentives to sell these type if products.

A lot of people will have a lot of cash available and a lot of establishments will want that cash for as little as possible.

 

Exactly. It's not as if the banks won't put their staff on big incentives to sell these type if products.

A lot of people will have a lot of cash available and a lot of establishments will want that cash for as little as possible.

 

I have edited as the initial advice to transfer was from an insurance agent. There are other scandals that I have come across from unscrupulous IFAs and agents. One guy used to arrange Scottish Amicable 25-year endowments for retirement planing instead of personal pension plans or share ISAs. He made a killing on commission and got away with it, even though the network regulating us knew about it. And the audacity was he accumulated over £100,000 himself in a personal pension. 



#129 JohnM

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Posted 24 March 2014 - 11:41 AM

Financial advisors? Pah! Why should I pay for their Porches and Bentleys and mansions on Martinique and super yachts and Armarni suits, eh St B?  :laugh:  :laugh:  :laugh:

 

In all seriousness, though, its not so much those unscrupulous FAs but the finance houses themselves that need the anally-inserted rocket. I do believe the they will now have to up their act or face extinction.  But in the end, caveat emptor. If a return-on-investment sounds too good to be true, it probably is.


Edited by JohnM, 24 March 2014 - 11:42 AM.


#130 MikeW

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Posted 24 March 2014 - 12:24 PM

With so much more now at stake some form of Finance lessons must be introduced to the school curriculum


Edited by MikeW, 24 March 2014 - 12:25 PM.


#131 JohnM

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Posted 24 March 2014 - 12:32 PM

School lessons in finance sound like a good idea  but I think that might be too late for most of us!  The new arrangements won't affect today's schoolkids, either, as everything will change again at some point. Anyway, good luck to anyone who can persuade a schoolkid to give up their myphones, Sky TV, Spotify, etc  and save up instead!



#132 MikeW

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Posted 24 March 2014 - 12:36 PM

Anyway, good luck to anyone who can persuade a schoolkid to give up their myphones, Sky TV, Spotify, etc  and save up instead!

You won't John.  But once that kid reaches 30 they'll look back on the education they had and know the basics of what they need to look for when they start to take their retirement seriously



#133 Saint Billinge

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Posted 24 March 2014 - 01:15 PM

Financial advisors? Pah! Why should I pay for their Porches and Bentleys and mansions on Martinique and super yachts and Armarni suits, eh St B?  :laugh:  :laugh:  :laugh:

 

In all seriousness, though, its not so much those unscrupulous FAs but the finance houses themselves that need the anally-inserted rocket. I do believe the they will now have to up their act or face extinction.  But in the end, caveat emptor. If a return-on-investment sounds too good to be true, it probably is.

 

John, you have found me out!  ;)



#134 Saint Billinge

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Posted 24 March 2014 - 01:17 PM

With so much more now at stake some form of Finance lessons must be introduced to the school curriculum

 

Should have been introduced many years ago and appalling that it never happened. 


Edited by Saint Billinge, 25 March 2014 - 12:27 PM.


#135 Saint Billinge

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Posted 24 March 2014 - 02:00 PM

Financial advisors? Pah! Why should I pay for their Porches and Bentleys and mansions on Martinique and super yachts and Armarni suits, eh St B?  :laugh:  :laugh:  :laugh:

 

In all seriousness, though, its not so much those unscrupulous FAs but the finance houses themselves that need the anally-inserted rocket. I do believe the they will now have to up their act or face extinction.  But in the end, caveat emptor. If a return-on-investment sounds too good to be true, it probably is.

 

John, I traded my Bentley in for a Rolls Royce paid for by my commissions. Happy days! The guy selling the flexi-endowments as well as With Profit Bonds bought a 10-bedroom house in the countryside. 



#136 JohnM

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Posted 24 March 2014 - 02:00 PM

John, you have found me out!  ;)

 

 I've seen you! You and your gold bracelets!!



#137 Saint Billinge

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Posted 24 March 2014 - 02:04 PM

 I've seen you! You and your gold bracelets!!

 

....and gold earrings and teeth.



#138 JohnM

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Posted 25 March 2014 - 10:07 AM

...and to cap it all, a St Helen's season ticket? 



#139 Tiny Tim

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Posted 25 March 2014 - 10:45 AM

...and to cap it all, a St Helen's season ticket? 

They can be snapped up for one gold tooth I believe.



#140 Saint Billinge

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Posted 25 March 2014 - 12:28 PM

They can be snapped up for one gold tooth I believe.

 

Two gold teeth at least!  ;)


Edited by Saint Billinge, 25 March 2014 - 12:29 PM.





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